Valeant is under criminal investigation over Philidor ties
American prosecutors have already started a criminal investigation into Valeant Pharmaceuticals International Inc. The very essence of the case is that whether this company concealed from insurers its relationship with a specialty pharmacy, which helped to boost its drug sales or not. That’s what we’ve just learned from the Wall Street Journal on Wednesday.
Lawyers at the US Attorney's Manhattan office are currently trying to find out whether hiding those ties might have amounted to defrauding insurers or not, the Journal report told, citing folks already familiar with the matter.
Later on Wednesday, a source familiar with the issue informed Reuters that investigators have been looking into what disclosures Valeant as well as the pharmacy, Philidor Rx Services, made to insurance companies regarding their relationship.
By the way, American-listed stocks of Valeant, officially headquartered in Canada, sagged 12.5%, hitting $23.90 in extended trading.